Jokowi’s Next Test? Tackling Inequality

An Indonesian youth fills up job application forms on a laptop provided by organizers at Kompas Career Fair in Jakarta on Aug. 22.

Reuters

The widening gap between rich and poor in Indonesia is on the minds of many, according to a recent survey. And how the next government plans to address it is a big question hanging over President-elect Joko Widodo.

Nine out of 10 people surveyed by the Indonesian Survey Institute, a local pollster, said they think there is a serious income gap in the country, a popular emerging market that has seen growth averaging around 6% in recent years. Those same respondents said the next administration should address the issue immediately after it gets to work in October.

When asked what they thought about income equality nationwide, around 52% of the more than 3,000 respondents said they considered current incomes “inequitable” and 40% of them said they believe they are “absolutely unequal.” The poll was conducted from May 27 to June 4, just shy of one month before this year’s presidential election.

According to the World Bank, inequality as measured by the Gini coefficient – the most common measure of inequality – increased by 11 percentage points between 2000 and 2013. It was the second-fastest increase in inequality in Asia after China, the World Bank reported in its July economic quarterly report.

To reduce inequality, those surveyed by LSI said the most important things Mr. Widodo could do would be to improve social security protections for the poor (31.2%), provide jobs (17.5%), eradicate corruption (14.3%), extend free education to all regardless of income level (8.5%) and give assistance to small businesses (7.4%).

Much of the current inequality stems from unequal access to job opportunities and living conditions people are born into, the World Bank says.

Maruarar Sirait, a lawmaker and member of Mr. Widodo’s party, didn’t directly respond to questions about how the next government would deal with those concerns, but he did express understanding of the problems. What Mr. Widodo would look at during his term, Mr. Sirait said, are business development and infrastructure, both of which “would create employment” he said.

About Southeast Asia Real Time

Indonesia Real Time provides analysis and insight into the region, which includes Singapore, Thailand, Indonesia, Vietnam, Malaysia, the Philippines, Myanmar, Cambodia, Laos and Brunei. Contact the editors at SEAsia@wsj.com.

Islamic State is providing “fresh oxygen” to extremist groups in Muslim-majority Indonesia, says a police official. What impact could the group known as ISIS have on Indonesia? And how is the government working to curb the danger? Here’s the short answer.